On May 16th, Steak ‘n Shake will become the latest national chain to accept Bitcoin as payment. Notably, this decision follows Jack Dorsey’s glowing endorsement on X (formerly Twitter). The headlines are blaring “crypto revolution,” “domino effect” ready to take out the retail world. Meantime, corporations are said to be catching on to Bitcoin as a hedge asset. So before we all run out and order a Frisco Melt purchased with sats, do us all a favor and slow down. We’ve got to sift through the data to begin with, though.
Let's be blunt: Bitcoin, right now, is a clunky payment system for everyday purchases. We’re not talking about going out to purchase a burger, let alone a yacht.
Bitcoin Burgers? Data Says Hold Up
Consider this: the average Bitcoin transaction fee fluctuates wildly. One time it’s a quarter, the next it’s $9. Now try telling a family of four that their $20 meal is going to cost them $28 due to Bitcoin network congestion. Good luck with that.
And speed? Credit card transactions are near instantaneous. Bitcoin transactions? Not so much. Instead, you could be left standing there, watching your milkshake melt, as you wait for the blockchain to confirm your payment.
Data doesn't lie. Bitcoin’s infrastructure as it exists today just isn’t equipped to handle the high-volume, low-value transactions of a quick-service restaurant. The crypto community is likely hurling epithets at me as we speak.
| Feature | Bitcoin (Current) | Credit Card |
|---|---|---|
| Transaction Fee | Variable, often high | Low (merchant) |
| Speed | Minutes/Hours | Instant |
| Scalability | Limited | High |
Here's where things get interesting. Let’s assume for a moment that Steak ‘n Shake has enough Bitcoin savvy to pull this off successfully. What happens next?
Hype vs. Reality: The Unintended Consequences
These aren't just hypothetical concerns. They’re real risks that merit serious consideration.
- Customer Alienation: The vast majority of people don't understand Bitcoin. Introducing a complex payment system risks confusing and frustrating customers. Will your grandma know how to pay with Bitcoin?
- Profit Margin Volatility: Bitcoin's price can swing wildly. Imagine Steak ‘n Shake accepting $10,000 in Bitcoin one day, only for it to be worth $8,000 the next. How does that factor into their already razor-thin profit margins?
- Slower Service: Training staff on Bitcoin transactions, dealing with potential errors, and waiting for confirmations will slow down service.
- Environmental Impact: Bitcoin mining consumes a massive amount of energy. Is Steak ‘n Shake ready to defend its decision to potentially increase its carbon footprint?
Recollect all of those previous retail crypto experiments from Chipotle, Starbucks, Subway, and Pizza Hut! They fizzled out not because Bitcoin is bad. The timing was wrong, and the feasibility just wasn’t there. Each time they all failed, but all were ahead of their time and the system just wasn’t ready to accept Bitcoin payments.
There's an unspoken element here: the libertarian ideals that often fuel Bitcoin adoption. The idea of a decentralized, unregulated currency is incredibly attractive to a lot of people. Instead, running a business involves swimming through a chaotic and complex maze of confusing regulations.
Regulation and the Libertarian Dream
How will Steak ‘n Shake pay their taxes on Bitcoin transactions? What about anti-money laundering (AML) compliance? At a time when government regulation of crypto is still developing, Steak ‘n Shake could soon find itself stuck in a regulatory crossfire.
As someone who very much believes in innovation and the concept of a decentralized future, I question Steak ‘n Shake’s approach. From my perspective it’s way too early to be using Bitcoin that way as payment.
Here's my take: Steak ‘n Shake's Bitcoin gamble feels more like a marketing stunt than a well-thought-out business strategy. Rather than rushing to endorse the latest fad, businesses should look at facts, real-world applicability and negative externalities. Dive into stablecoins, watch for Bitcoin’s infrastructure to develop, or just do business with established payment methods.
Before you share this article, ask yourself: Is this Bitcoin adoption, or just digital hype?
Before you share this article, ask yourself: Is this Bitcoin adoption, or just digital hype?
Sahan De Silva
Industry News Editor
Sahan De Silva offers in-depth, analytic coverage of the blockchain industry, rigorously balancing data-driven insights with accessible explainer pieces. He values collaborative investigation and thorough reporting. In his personal life, Sahan practices photography and is passionate about Ceylon tea culture.
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